Executive Summary

It is becoming increasingly important for suppliers today to be able to predict an outsourcing transaction. With uncertainties in the macroeconomic environment and buyers scrutinizing their outsourcing business case with increased rigor, suppliers need to be able to focus their sales efforts on outsourcing opportunities that are likely to materialize.

The best way to win a Request for Proposal (RFP) is to pre-empt it. The RFP is a necessary evil for both buyer and supplier. Ideally, neither of the parties wants it to happen.

Our analysis of outsourcing activity leads us to believe that we can predict an outsourcing transaction. Everest developed a proprietary methodology (Everest Predictive Model – EPM) that uses business events to do this. The EPM allows us to pinpoint the link between business events and outsourcing transactions. It produces two key outputs for each company in the scope of the effort: transaction window and the opportunity segmentation based on the buyer’s momentum and urgency.

We went further and applied the EPM to two independent markets, Australia and Canada, and received very encouraging results. Our analysis of the Canadian marketplace indicates a significant number of potential outsourcing targets in Canada along with a short list of high probability targets.

This paper discusses:

• The importance and benefits of being able to predict an outsourcing transaction
• The Everest methodology for outsourcing transaction prediction that allows pinpointing the link between corporate business events and outsourcing transactions
• The high-level results of applying the Everest Predictive Model to the Canadian marketplace